PraultShell, Inc. v. River City Bank

In March 2020, PraultShell, Inc. (defendant) executed a promissory note in favor of River City Bank (River City) (plaintiff) for $952,473.82, with a maturity date of April 3, 2021. Trent Prault, Roger Shell, Jay Shell Entertainment, Inc., and Rome City Brewing Co., LLC (guarantors) (defendants) each executed an absolute, present, unconditional, and continuing guaranty of payment of the note. The loan was used to construct and operate a brew pub and restaurant. PraultShell stopped making payments on the note in 2021. River City sent a demand letter declaring the debt in default, but neither PraultShell nor any of the guarantors satisfied their obligations. In July 2021, River City sued PraultShell and the guarantors (collectively, Prault) for breach of the note, breach of the guaranties, and attorney fees. River City later moved for summary judgment on all claims. Prault opposed the motion, arguing that their performance—specifically, their ability to repay the loan—was rendered impossible because they were forced to close the brew pub and restaurant in response to COVID-19-related executive orders temporarily closing or restricting bar and restaurant operations, as well as related staffing and supply shortages that made continued operation virtually impossible. After a hearing, the trial court granted River City’s motion for summary judgment. Prault appealed.